Should I Buy a Home?

Benefits of Home Ownership

Homeownership continues to provide many benefits to U.S. households. In addition to obvious benefits of safety and shelter, homeownership offers households an opportunity to accumulate assets and build wealth.

Home is Largest Asset for Many

According to a recent study the National Association of Homebuilders, the primary residence accounted for 62% of homeowners’ total assets. Nationally, the primary residence represents the largest asset category on balance sheets of households.

Larger Net Worth for Owners

According to a study by the Federal Reserve, owning a home has an enormous impact on net worth. Net worth of a homeowner is thirty times greater than that of a renter. In specific terms, the average homeowner has a net worth of $174,500 while the average net worth of a renter is $5,100.

Buy a Home Before 2014

Are you a renter? Now is the time to consider homeownership! Rates continue to hover near historical lows, but are expected to rise in 2014. Home prices are also on the rise. Savvy shoppers can save a lot by of money by purchasing a home before rates and home prices rise much further. Furthermore, by locking in your mortgage payment now for the next 30 years, you are insulating your mortgage payment from inflation.

Loan Programs for New Home Buyers

Are you ready to buy a home? Inlanta offers a number of loan programs, from no and low down payment loan programs to jumbo mortgage financing. Review our loan programs page for more information on loan programs, or contact a licensed Inlanta Mortgage loan officer for a no obligation consultation. Use our branch locator to find a loan officer near you.

About Inlanta Mortgage

Inlanta Mortgage is proudly celebrating twenty years in business. Learn more about Inlanta’s twenty year history here.

Inlanta Mortgage offers Fannie Mae/Freddie Mac agency products, as well as a full suite of jumbo and portfolio programs. The company is fully delegated HUD-FHA including FHA 203K, VA, and USDA approved. Inlanta Mortgage also offers numerous state bond agency programs. Review Inlanta’s mortgage loan programs here.

Inlanta Mortgage is a multi-state mortgage banker based out of Brookfield, Wisconsin. NMLS #1016. Inlanta Mortgage is proud to be named to the Scotsman Guide Top Mortgage Lenders 2012 list and to be among the Top 100 Mortgage Banking Companies in America in 2012. Inlanta Mortgage was also recently recognized as a USDA Platinum Million Dollar mortgage lender by the USDA Rural Development Guaranteed Rural Housing Program.

 

Buying a Home

Buy a Home

 

Buying a home is a big deal. Where do you start?

How Much Can You Afford?

Look at your budget and determine how a house fits into it. Fannie Mae recommends that buyers spend no more than 28% of their income on housing costs. Go much past 30% and you risk becoming house poor. Visit our blog post How Much House Can You Afford? This post will help you understand how Inlanta Mortgage computes the amount you are pre-approved to purchase. Click here to learn more about the importance of getting pre-approved.

What Type of Loan Programs are Available?

There are a number of loan programs available – including no or low down payment options. An Inlanta Mortgage professional can help you decide which of the following programs is the best home financing option for you.

Conventional Mortgage Loans – Traditional program that usually requires 5% down and offers competitive interest rates.

Jumbo Mortgage Loans – A jumbo mortgage is a loan amount above conventional conforming loan limits. Consult an Inlanta Mortgage Loan Specialist to discuss if a jumbo mortgage is suited for you.

FHA Mortgages – FHA mortgages enable the borrower to put as low as 3.5% down and are available to borrowers with less than perfect credit.

USDA Mortgages – USDA mortgage loans are designed to help lower income individuals or households purchase homes in rural areas.

VA Mortgages – VA mortgage loans are federally guaranteed mortgage loans for veterans that don’t require a down payment.

Avoid First Time Home Buyer Mistakes

Review our blog posts on common first time home buyer mistakes:

Inlanta Mortgage offers Fannie Mae/Freddie Mac agency products, as well as a full suite of jumbo and portfolio programs. The company is fully delegated HUD-FHA including FHA 203K, VA, and USDA approved. Inlanta Mortgage also offers numerous state bond agency programs. Review Inlanta’s mortgage loan programs here.

Inlanta Mortgage is a multi-state mortgage banker based out of Brookfield, Wisconsin. NMLS# 1016. Inlanta Mortgage is proud to be a recent recipient of a 2012 Top Workplace Award.

 

When is Owning Better Than Renting?

 

Rent or Buy a House

When is owning better than renting?

According to a new analysis by Zillow, buying is a better financial decision than renting for most buyers who intend to live in a home for at least three years.

Zillow analyzed the “breakeven horizon” in more than 200 metropolitan areas and 7,500 U.S. cities to determine how many years it would take before owning a home becomes more financially advantageous than renting the same home. In more than 75 percent of the metro markets analyzed, a homeowner would break even after three years or less of owning a home.

All possible costs associated with buying and renting were incorporated into the analysis, including downpayment, mortgage and rental payments, transaction costs, property taxes, utilities, maintenance costs, tax deductions and opportunity costs, while adjusting for inflation and forecasted home value and rental price appreciation.

In some metro areas where home values fell dramatically during the housing recession, homebuyers break even after less than two years of owning a home. The Miami-Ft. Lauderdale metro is among the most favorable for buying, with homeowners breaking even after only 1.6 years of living in the home. However, in the San Jose metro area, where home values are among the highest in the nation, a buyer must commit to living in their home for 8.3 years before they will break even.

“Across most of the country, historic levels of affordability make buying a home a better decision than ever, especially considering rents have risen more than five percent over the past year,” said Stan Humphries, Zillow chief economist. “This is the first analysis of metros and cities that presents the buy versus rent decision in an intuitive way, by telling consumers how long they must live in the home before buying breaks even with renting financially. It’s much more understandable, and therefore useful, than the abstract notion of a simple ratio of prices to rents. If we want consumers to act on market information, we have to align it with how they think about the issue and make it straight-forward to grasp.”

Original Sources: Zillow, Forbes

Are you looking to make the leap from renting to home ownership? Here are some additional links regarding the benefits of home ownership that you may find useful:

Are you ready to discuss your home financing options with a licensed mortgage professional? Contact an Inlanta Mortgage loan professional near you.

Inlanta Mortgage offers Fannie Mae/Freddie Mac agency products,  as well as a full suite of jumbo and portfolio programs. The company is  fully delegated HUD-FHA including FHA 203K, VA, and USDA approved.  Inlanta Mortgage also offers numerous state bond agency programs. Review Inlanta’s mortgage loan programs here.

Inlanta Mortgage is a multi-state mortgage banker based out of Brookfield, Wisconsin. NMLS# 1016. Inlanta Mortgage is proud to be a recent recipient of a 2012 Top Workplace Award.